The dynamics of businesses have drastically changed and so does has retailing itself. With its growing complexities, various inefficiencies have taken place in this form of business too. The challenge largely lies with those who are operating measurable chains at a time. Retailers have to be aware of various issues whether it is about knowing the exact needs of the choosy customers, or about purchasing complex inventories. Whatever the issues may be the retailers have to charge the right price and make use of the most suitable promotional technique for every item displayed. The uncertainty of demand is inevitable, thus would mean that their always room for imbalance between the demand and supply. How exhaustive this business may sound, it may come as surprise to hear that the retailing business is soon going to experience a massive revolution through the ‘merchandising optimization systems’. This system will serve the purpose of brushing off all the inefficiencies resulting in the entire operations by determining the exact quantity, allocation, and price of the items, thus allowing for an optimal return. The system will make use of sophisticated data processing technique on the available data of inventory and sales which eventually result in an accurate forecasting of the supply and demand; surprisingly at both the item and store level. This software ensures tremendous gains for the users, as evident by the incredible targets of 5% to 10% achieved by its early users like Gymboree and J.C. Penny.
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